UPDATE 2-Chile plans new LNG terminal to ease power crunch

SANTIAGO May 15 (Reuters) - President Michelle Bachelet
said on Thursday that Chile would build a new liquefied natural
gas (LNG) terminal and strengthen the state-run oil company as
she set out her $650 million energy policy that seeks to deal
with a mounting power crunch.

An LNG terminal would be built in the central-south region
of the mining powerhouse, she announced. It would be Chile's
third, alongside the already running Mejillones in the
mineral-rich north and centrally-located Quintero, which is set
to also be expanded.

Power projects in Chile have increasingly faced strong
public opposition on health and environmental grounds, often
winding up entangled in regulatory limbo.

Center-left Bachelet, who took power in March, has spoken in
favor of gas as part of a quick, substantial and environmentally
acceptable solution to the stalemate. She is also keen to expand
the use of renewable energy.

The push towards LNG has been further bolstered by a surge
in shale gas production in the United States that is
transforming the global energy market.

State oil company Empresa Nacional del Petroleo (ENAP)
would participate in the construction of the new LNG
terminal, and the energy plan included an extra $400 million to
bolster the debt-plagued firm.
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